The sobering news for British drinkers has seen the price of a pint of Carlsberg rise by 2.6 per cent on average and an added 6 pence added to the cost of a pint of Heineken
Besides Heineken and Carlsberg upping prices, Molson Coors, maker of Carling, and Anheuser-Busch InBev, who brew Budweiser are also raising prices.
The price rises add to an ever increasing list of products and businesses raising prices after the UK voted to leave the EU in June 2016.
Added pressure for British brewers
With prices rising from EU imported beer, now could be the time to try more locally brewed beers however the effects of Brexit could also impact British breweries too.
“As with all other imported products, beer imports will be facing upward cost pressures due to the exchange rate,” explains Brigid Simmonds Chief Executive, BBPA.
“When it comes to British-brewed beer, it is made predominantly using domestic raw materials, but there are still some inflationary pressures, through increases in costs such as raw materials, packaging, energy and transport, as well as business rates, employment and other cost pressures all businesses are facing.” Brigid adds.
With many EU citizens working in various industries across the UK breweries could also face an added cost of labour as Brigid says: “We need to ensure that post Brexit, the industry can secure the labour and skills it needs, if this is not to add further pressure.”
Taxation remains costly issue for pubs
Brits currently pay a significantly higher tax than their EU neighbours and currently have the second highest tax rates in the EU.
Brigid adds, “Higher inflation will also lead to higher levels of indexation for taxes like beer duty, creating a vicious circle when it comes to cost pressures, which is why we are strongly urging the Chancellor to cut beer duty on a pint by one penny, in the March Budget.”
In 2015 the BBPA reported Britons pay almost 40 per cent of all EU beer duty but only consume 12 per cent of the beer.